They rightly want to break down the country's system of nationwide pay bargaining, link pay more closely to productivity, cut red tape and make working hours more flexible all good ideas for loosening up Germany's corpulent economy, reducing its social costs and labour-market stickiness.

ECONOMIST: Germany??s choice

The original postwar Social Compact was sustained by a combination of economic growth, union bargaining power, government policies and enforcement, and organizational practices that reinforced wage norms based on productivity.

FORBES: "The Economy" Not Acceptable Answer to Your Request for a Raise